CCI Members to Payday Lenders: “Enough is Enough!”

FOR IMMEDIATE RELEASE:

CCI Members to Payday Lenders: “Enough is Enough!”

Monday, June 15, 2009 – Des Moines, Iowa – Two dozen members of Iowa Citizens for Community Improvement (CCI) and concerned residents of the community visited three area payday lenders on the morning of Saturday, June 13, to deliver a simple message: fair lending in the community does not include crushing interest rates, unrealistic payback periods and misleading advertising, and everyday people deserve access to good, affordable credit.

“Payday lenders have a responsibility to the community to make lending affordable and reasonable,” said CCI member Angela Wymore of Des Moines.  “I was in the payday lending cycle for a year.  I had to go from one payday lender to pay another.  I probably ended up paying $1,500 on what was supposed to be a $500 loan.  Enough is enough!”

CCI members delivered a letter to the staff of EZ Money, Advance America, and LoanMax, outlining realistic and fair guidelines for a sustainable short term loan that is based on CCI’s own Small-Dollar Loan program.  The letter also reiterated CCI’s request for top officials of the payday lending industry to meet with community members and negotiate better loan terms.  This is CCI’s third request for a meeting.

“It looks like these lenders don’t see us, the community, as a priority,” said CCI member Misti Craig, also of Des Moines.  “Well this is a priority to us, and it looks like we’ll be taking our meeting to them.”

Payday lending can have a devastating effect on families.  With annual percentage rates well above 400 percent and two-week payback periods, borrowers are frequently caught in a cycle of debt that can be impossible to escape.  CCI members have been fighting for access to good credit since our founding, and will continue to address banks, credit unions and legislators to push for the availability of good and affordable credit.

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Iowa Citizens for Community Improvement is a group of everyday people who talk, act and get things done on issues that matter most. With thousands of members from all walks of life – urban and rural, black and white, immigrants and lifelong Iowans – CCI has been tackling tough issues and getting things done for more than 30 years.

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